Craft beer is no longer the domain of craft brewing enthusiasts alone. More and more people want a taste of the action.
Case in point, Seattle-based Elysian Brewing Co. becomes the fourth craft brewery acquired by Anheuser-Busch (AB InBev), the world’s largest beer company, in the past five years.
“For two decades, we’ve welcomed guests into our brewpubs and served them creative and impeccably crafted beers,” says Joe Bisacca, Elysian CEO and co-founder “After a lot of hard work, we’ve grown from one Seattle brewpub to four pub locations and a production brewery. With the support of Anheuser-Busch, we will build on past successes and share our beers with more beer lovers moving forward.”
The terms of the acquisition were not disclosed, but details should be finalized by the end of first quarter. Bisacca will carry on the Elysian name, along with his partners, Dick Cantwell and David Buhler.
Who is Elysian Brewing Co.?
Opened in 1996 in the Capitol Hill area of Seattle, Elysian has become one of the fastest-growing breweries in the Pacific Northwest. In just five years, it went from selling 5,000 barrels to 50,000 barrels—no small feat. Its award-winning portfolio contains more than 350 different beers, including Immortal IPA, which accounted for more than a quarter of sales in 2014.
“Elysian’s story includes everything we look for in a partner,” says Andy Goeler, CEO of craft breweries for Anheuser-Busch. “The team has spent their careers brewing distinctive beers in the thriving West Coast beer community and building unique venues that celebrate beer. As the fastest-growing brewer in Washington, their recipe is working. Elysian’s brands are an important addition to our high-end beer portfolio, and we look forward to working together.”
The acquisition included Elysian’s four Seattle brewpubs: Elysian Capitol Hill, Elysian Tangletown, Elysian Fields and Elysian Bar.
Big Beer’s attraction to craft brands
It’s not difficult to guess why AB InBev has its sights set on acquiring popular craft breweries: Craft beers continue to eat away its market share year over year. Many beer drinkers have traded in their mild-flavored lagers (i.e., Budweiser and Bud Light) for handcrafted India Pale Ales and porters.
Though AB InBev’s beers still account for approximately half of the 200 million barrels of beer consumed annually in the United States, its volume has declined 9 percent over the last decade, while craft brewer’s market share continues to rise.
If you can’t beat ’em, acquire ’em, right?
Anheuser-Busch’s craft beer portfolio
AB InBev began its buying spree in 2011 with Chicago-based Goose Island, paying $38.8 million. In 2014, it bought two more: Blue Point Brewing Co. of Patchogue, New York, and 10 Barrel of Bend, Oregon. With 10 Barrel and Elysian now part of the team, AB InBev solidifies a strong craft beer presence in the Pacific Northwest, a region whose craft beer consumption outpaces the rest of the country. In just Portland and Seattle, craft beer has more than 30 percent of the market, contributing to the 12 percent national market share.
So the question is, who’s next? Is AB InBev going to keep up its spending spree? Is it good or bad for the beer industry?
Tell us your thoughts in the comment section below.
